Where to go next? I have worked this morning to get this board running now it seem this is getting nowhere:

(Desktop) 1 % eval DATAFLASH::SelectDataflash AT91C_SPI0_CS0
-I- Init SPI0 for DataFlash interfaces
-I- Configure SPI0 PIOs
-I- Enable PMC for SPI0
-I- Reset the SPI0
-I- Configure SPI0 in Master Mode (no CS selected)
-I- Configure SPI0 CS0 for DataFlash AT45
-I- Disable the RX and TX PDC transfer requests
-I- Reset all Counter register Next buffer first
-I- Enable the RX and TX PDC transfer requests
-I- End of Init_DataFlash
-I- Switch to the correct PCS of SPI0 Mode Register (Fixed Peripheral Selected)
-I- Chip Select 0 Selected
-I- Enable the SPI0
-I- Wait for dataflash ready (bit7 of the status register)
-E- DataFlash Not Detected

Ok, fixed it jumper 21 should be not only in place but also between pins 1 and 2, not 2 and 3 like the board came in (for ext flash device). Now if I only could figure out all the ip-settings or how to raw write usb stick with xp.